Master of Management Studies (M.M.S) Financial Markets and Institutions Syllabus - Mumbai University 2026

Course objectives

• 1 To provide an understanding of the structure, functions, and regulatory environment of the Indian financial system.
• 2 To differentiate and critically assess the roles played by various financial intermediaries in capital mobilization.
• 3 To impart practical knowledge of primary and secondary markets, including financial instruments, IPO processes, and market mechanisms.
• 4 To develop the ability to evaluate fixed income securities, mutual funds, and insurance products for informed investment decision-making.
• 5 To illustrate practical usage of derivative instruments in hedging, speculation, and arbitrage activities within financial markets.

Course outcomes

• CO1: Explain the structure and functioning of the Indian financial system, including the role of regulatory bodies like SEBI, RBI, IRDAI, and PFRDA.
• CO2: Differentiate between various financial intermediaries and assess their roles in mobilizing savings and allocating capital.
• CO3: Apply knowledge of primary and secondary markets to analyze financial instruments and processes such as IPOs, mutual funds, and insurance products.
• CO4: Evaluate the characteristics and pricing of fixed income securities, and assess risk- return trade-offs in mutual fund and insurance products.
• CO5: Demonstrate an understanding of derivative instruments and their application in speculation, hedging, and arbitrage across financial markets.

Unit 1 CO1 · 3 hours

The Financial System of India: Overview of Financial Markets in India; Financial Market Intermediaries; Financial Market Instruments; OTC and Exchange Markets; Introduction of Capital Markets (Equity, Debt markets) and Money market. Role of SEBI in Capital Market; RBI’s monetary policy and role in Indian Financial System, IRDAI, PFRDA.

Unit 2 CO2 · 3 hours

Financial Intermediaries: Commercial banks, investment / merchant bank, mutual funds, pension funds, insurance companies, NBFCs, Hire-purchase and leasing companies, Asset Reconstruction Companies, Primary Dealers

Unit 3 CO1, CO2 · 6 hours

Primary Market and Secondary Market: IPO: Process of going public (Initial Public Offer), underwriting efforts to ensure price stability, stock offering, organized exchanges, Depositories, Clearing Houses, Role of Speculators /Hedgers, Order placing types market Limit stop loss orders, Circuit breakers Globalization of Indian stock market. Other Types of Issues: Right issues, Bonus Issue; share split, Buy back of shares, Private placement, preferential allotment.

Unit 4 CO2, CO3 · 6 hours

Financial Services: Classification of financial services including Banking Services, Factoring, Forfaiting, New financial products and services including financial technology-based services, CBDC, etc., challenges facing the financial service sector

Unit 5 CO2, CO3, CO4 · 6 hours

Fixed Income Securities, Mutual Fund and Insurance: Bond characteristics, bond types, coupon types, Basic computation of different yields and bond price, relationship between yield and price, floaters and inverse floaters, zero coupon yield curve. Basics of Mutual Funds, types of Mutual Funds; NAV; Basics of Insurance; Types of Insurance Products.

Unit 6 CO3, CO4, CO5 · 6 hours

Derivatives: Financial market activities – speculation, hedging and arbitrage in: Stock Markets; Forex Market; Commodity Markets; Interest Rates and Basics of Derivative Products-Forwards, futures, options and swaps

Text Books

• 1 Indian Financial System, Markets, Institutions & Services 6th Edition,75 years of policy reforms, Government securities markets, banking sector, corporate bond market, insurance sector & mutual funds, Bharati V. Pathak, Pearson
• 2 Financial Markets and Institutions, by Frederic S. Mishkin, Stanley Eakins, Pearson
• 3 L M Bhole and Jitendra Mahakud, Financial Markets & Institutions.

Reference Books

• 1 Fabozzi, The Handbook of Fixed Income Securities.
• 2 Anthony Saunders, Financial Markets and Institutions.
• 3 Meir Kohn, Financial Institutions & Markets.
• 4 Gordon and Natrajan, Financial Markets and services
• 5 Jeff Madura, Financial Institutions and Markets
• 6 Bhole and Mahakud, Financial Institutions and Markets